Hedge Fund Investment: Optimal Portfolios with Regime-Switching.

We investigate the benefits of including hedge funds into a portfolio of stocks, bonds, and commodities. We use a multivariate canonical vine copula regime-switching model which allows for non-linearity, asymmetry, and time variation in hedge fund returns. We find that the willingness to pay to acce...

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Publicado en:Journal of Financial Econometrics Vol. 24; no. 3; pp. 1 - 41
Autores principales: Heinen, Andréas, Valdesogo, Alfonso
Formato: Artículo
Publicado: Oxford University Press / USA 2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: 2026
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        10.1093/jjfinec/nbag009
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        atl: Hedge Fund Investment: Optimal Portfolios with Regime-Switching.
      aug:
        au:
          Heinen, Andréas
          Valdesogo, Alfonso
        affil:
          CNRS, THEMA, CY Cergy Paris Université, Cergy-Pontoise 9500, France
          Department of Applied Economics, Universitat de les Illes Balears, Palma 07122, Spain
      su:
        Risk aversion
        Portfolio management (Investments)
        Asset allocation
        Investment pools
        Markov processes
        Statistical models
        Investment policy
        Market volatility
      sug:
        subj:
          Risk aversion
          Balanced funds / asset allocation funds
          Portfolio Management
          Portfolio management (Investments)
          Asset allocation
          Investment pools
          Markov processes
          Statistical models
          Investment policy
          Market volatility
      keyword:
        asymmetric dependence
        C32
        C53
        C58
        canonical vine
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        G11
        hedge funds
        inLanguage:en
        multivariate copula
        optimal portfolio
        publisher:Oxford University Press
        regime-switching
        sameAs:https://dx.doi.org/10.1093/jjfinec/nbag009
        asymmetric dependence
        C32
        C53
        C58
        canonical vine
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        G11
        hedge funds
        inLanguage:en
        multivariate copula
        optimal portfolio
        publisher:Oxford University Press
        regime-switching
        sameAs:https://dx.doi.org/10.1093/jjfinec/nbag009
      ab: We investigate the benefits of including hedge funds into a portfolio of stocks, bonds, and commodities. We use a multivariate canonical vine copula regime-switching model which allows for non-linearity, asymmetry, and time variation in hedge fund returns. We find that the willingness to pay to access hedge funds is about 4 cents per dollar, and it increases with risk aversion; the weights in hedge funds show an inverse U-shape with risk aversion; hedge funds tend to replace stocks (bonds) for risk-averse (risk-tolerant) investors; investing in hedge funds increases historical returns only until 2008, but reduces volatility even after.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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